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German Job Growth Stalls as Work Hours Decline

Despite service sector gains, falling labour input underscores deep structural pressures across Germany’s regions.

Overview

  • Employment rose by only about 10,000 in Q2 2025 year-on-year, marking the weakest gain since the summer 2022 post-pandemic boom.
  • Seasonally adjusted figures show headcount growth of barely 7,000 between Q1 and Q2, signalling a near-standstill in hiring.
  • Total hours worked fell 0.5 percent to roughly 14.4 billion during April–June, and average hours per employee dropped to 315.4.
  • Manufacturing and construction continued to shed jobs (minus 141,000 and minus 21,000 respectively), while the services sector added 178,000 positions.
  • Persistent regional disparities, rising unemployment and a drop in vacancies point to broader structural challenges for a swift labour-market recovery.